UK pharma faces recruitment problems despite favourable pay rises

Despite recording the fourth highest industry pay rise, the UK pharmaceutical sector also had higher resignation levels and employers are facing record recruitment and retention problems, according to the National Management Salary Survey, published by the Chartered Management Institute.

Resignation rates in the pharmaceutical sector reached 4.4%, compared with 1.5% last year, and organisations are struggling to attract staff as movements in earnings drop for the first time in four years and bonuses become less frequent.

At 5.5%, employees in the pharmaceutical sector are fourth in the industry 'pay rise league table'. The smallest was awarded to employees in the transport and logistics sector (2.6%) and top of the 'pay rise league table' for the 12 months to January 2007 is the HR sector (5.9%).

In real terms, the findings show average total earnings for managers in the pharmaceutical sector of £50,525, compared with £47,449 across the whole of the UK. The figure places managers in the sector as the highest 'industry earners'. It is also clear that bonus payments are playing less of a role in overall pay. The survey revealed an average bonus payment across in the pharmaceutical sector of £4,699, compared with £7,315 last year.

Rresignations in the pharmaceutical industry have increased to 4.4% compared with 1.5% last year. In industry terms, the pharmaceutical sector is not suffering resignations as much as retail (11%) or insurance (8.2%), but it is faring worse than the food and drink sector (3.8%) and transport and logistics (2.4%).

'The steep climb in organisations reporting recruitment difficulties, mixed with an increasing number of resignations should be ringing alarm bells for employers,' said Jo Causon, director, marketing and corporate affairs at the Chartered Management Institute. 'The marketplace is clearly tipping in favour of the employee, so if they are serious about retaining the best talent organisations urgently need to meet the needs and expectations of their staff.'